Dividend-News

Daily dividend news for investors in dividend stocks


S&P 500 High Dividend ETF: A Good Starter Fund

Published Thu, 21 Mar 2019 11:55:35 -0400 on Seeking Alpha

It is no secret that I am a fan of dividend-paying stocks. In my article published back in 2016, I discussed how a dividend-rich investment approach has (perhaps counterintuitively, given the more conservative nature of the strategy) produced superior results compared to the S&P 500 index (SPY) over a multi-decade period.

Image credit
Fast-forward a couple of years, and it looks like high-yield stocks still have been holding up very well against the broad market.
As the chart and table below depict, the SPDR Portfolio S&P 500 High Dividend ETF (SPYD) (a fund that tracks the performance of 80 high-yield companies within the S&P 500, equally weighted and rebalanced semi-annually) has inched ahead of the broad market in risk-adjusted terms since the end of 2015. In what pertains to the downside, SPYD produced an average daily return of -3.2% on the three worst days of the period against the S&P 500's more painful -3.8%, which I find intriguing.
Maybe even more curiously, the absolute outperformance of high-yielding dividend stocks seems to have been most pronounced during the bull years of 2016 and 2017, when one might have expected a more aggressive basket of lower-yielding stocks to generate richer returns.

Source: DM Martins Research, using data from Yahoo Finance
The "high yield" component of SPYD's performance depicted above proved to be crucial over the two-and-a-half-month period. Once dividend payments are stripped from the... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
SPDR S&P 500 ETF 292.23   0.0 0.00 5.24 1.80

SPDR S&P 500 ETF - SPY
SPDR S&P 500 ETF - SPY  


Older articles featuring Spdr S&p 500 Etf (SPY):
Weekly Review: High-Yield CEFs - KIO Has One Of The Highest Current Yields
3 Upcoming Dividend Increases
Weekly Review: High-Yield CEFs - DHF Has Solid Past Performance And Juicy Current Yield
International Select Dividend ETF: Worth The Hassle?
4 Dividend Kings, Champions, And Challengers Set To Announce Increases
Weekly Review: High-Yield CEFs - GHY Is The Fund With The Biggest Discount
Of Slopes And Flops: The Yield Curve Inversion
S&P 500 Dividend Growth To Decelerate
Weekly Review: High-Yield CEFs - IVH Is An Attractive Combination Of Discount And Current Yield
Retiring On Monthly Dividends: The 'Landlord' Approach To Building Passive Income

More